Grape (Vitis sp.) belonging to Family Vitaceae is a commercially important
fruit crop of India. It is a temperate
crop which has got adapted to sub-tropical climate of peninsular India.

2.OBJECTIVE

The primary objective of this exercise
is to support commercial cultivation of grapes by projecting a one acre
bankable model project.The high yield
of grape is limited to a few vineyards and is not consistent throughout the
life - span of the crop. In order to
get uniformly high yields with good quality fruit, the basic principles of
viticulture needs to percolate down to
all the growers.

Peak production during March-April
months leading to glut in the market and poor quality of grapes resulting in
tremendous post-harvest losses are other problems which limit profits. Growers
need to be educated on means of extending harvest over a longer period to get
better price for their produce and to minimize market risk.

3.BACKGROUND

3.1Origin

Grape cultivation is believed to
have originated in Armenia near the Caspian Sea in Russia, from where it spread
westward to Europe and eastward to Iran and Afghanistan. Grape was introduced
in India in 1300 AD by invaders from Iran and Afghanistan.

3.2Area & Production

India is among the first ten
countries in the world in the production of grape. The major producers of grape
are Italy, France, Spain, USA, Turkey, China and Argentina.This crop occupies fifth position amongst
fruit crops in India with a production of 1.21 million tonnes (around 2% of world’s
production of 57.40 million tonnes) from an area of 0.05 million ha. in 2001-02.
The area under grape is 1.2 % of the total area of fruit crops in the
country.Production is 2.8% of total
fruits produced in the country. About 80% of the production comes from
Maharashtra followed by Karnataka and Tamil Nadu.

The area and production trends of
grape during the period 1997-98 to 2001-02 are depicted in Graphs-1 & 2.

State-wise area, production and productivity
of grapes are given in Table-1 below.

Table-1: State-wise Area, Production & Productivity of Grapes during
2001-02.

State

Area

(‘000 Ha.)

Production

(‘000 MT)

Productivity

(MT/Ha.)

Maharashtra

32.50

911.60

28.10

Karnataka

10.00

169.70

16.90

Tamil Nadu

2.40

51.70

22.00

Punjab

1.40

36.70

27.00

Andhra Pradesh

1.50

29.40

20.00

Haryana

1.10

6.40

5.70

Madhya Pradesh

0.10

2.60

25.00

Mizoram

0.20

0.60

3.20

Jammu & Kashmir

0.20

0.30

1.60

Others

0.10

0.60

-

TOTAL

49.50

1209.60

24.40

Source:
Database of National Horticulture Board, Ministry of Agriculture , Govt. of
India.

Variety-wise break-up of the area is as below:

Sr. No.

Variety

Percent Area

1

Thompson Seedless

55.0

2

Bangalore Blue

15.0

3

Anab-e-Shahi & Dilkhush

15.0

4

Shared Seedless

5.0

5

Perlette

5.0

6

Gulabi & Bhokri

5.0

3.3Economic Importance

The fruit contains about 20% sugar
in easily digestible form besides being rich in calcium and phosphorus. World over it is grown mainly for wine making
(82% production), raisin making (10% production) and rest for table purpose
(8%). In India, however it is mostly consumed as fresh fruit and only a limited
quantity is utilized for the production of liquor, dry fruits like raisins etc.

4.MARKET ANALYSIS AND STRATEGY

4.1Demand and Supply Patterns

The contribution of India in foreign
trade of grape and its processed products is meager, although, export of fresh
grape from India is on the increase. The
share of Indian grape in the imports of the European countries (U.K., Germany, France,
Netherlands) and Asian countries (Japan, Singapore, Hong Kong and China) needs
to be increased.

Varieties in demand in international markets include Thompson Seedless, Emperor, Ruby Seedless, Red globe, Christmas rose, Crimson Seedless, Calmeria, Rouge Ribier, Exotic, Fantasy Seedless. Several varieties such as Thompson Seedless, Flame Seedless, Shared Seedless, Tas-A-Ganesh and Sonaka, that are currently in demand in the international markets, are produced and exported from India. However, seeded varieties that are demanded in USA and Italy markets are not produced in India. To tap this potential, there is a need to increase area under seeded varieties of grapes.

The wine trade has enormous potential. With the support of Govt. policies India can make a mark in wine industry at global level.

‘Mahagrapes’, a co-operative partnership firm established in 1991, with the support of Maharashtra State Agricultural & Marketing Board (Pune), NCDC (New Delhi), Govt. of India, National Horticulture Board (Gurgaon, Haryana) and APEDA has established itself as a major organization exporting quality grapes from India to European Union and Middle East markets. It has succeeded in establishing its brand name in the highly competitive and quality conscious international markets.

4.2Import / Export Trends

The major exporters are Italy,
Chile, USA, S. Africa, Spain, Greece, Netherlands etc. The major importers of
grapes are USA and Germany followed by France, U.K., Canada, Netherlands and
Hong Kong.

Fresh grapes are being exported from
India to about 30 countries including U.K., Netherlands, U.A.E., Bangladesh,
Germany, Belgium, Saudi Arabia, Oman, Kuwait, Sri Lanka, and Bahrain.The trend in export of fresh grapes during
the period 1999-2000 to 2002-03 is given in Graph-3.The export statistics of fresh grapes from
India during 2001-02 is presented in Table-2.

Table-2: Country-wise export of fresh
grapes from India during 2001-02.

Country

Quantity

(‘000 Tonnes)

Value

(Rs.in crores)

U.K.

5.04

24.08

U.A.E.

4.83

16.90

Netherlands

1.35

6.36

Saudi Arabia

0.62

1.92

Sri Lanka

0.56

1.62

Oman

0.51

2.76

Germany

0.28

1.17

Others

1.35

5.15

Total

14.57

59.96

Source:
APEDA, New Delhi

About 100 metric tonnes of grapes
were imported during the period 1999 to 2002, at an average per kg. price of
Rs.50.38. These were mainly imported from Afghanistan (37%), USA (15%),
Australia (12%), Vietnam (11%), New Zealand (7%), Singapore (6%) and China (5%).
Besides, small quantities were imported from South Africa, Iran, Syria, Turkey,
Pakistan and Bangladesh.

4.3Analysis and Future Strategy

Production currently is much higher
than demand in the domestic market.There is need to promote export of grape and its products to sustain
present production trend.Otherwise
growers can incur heavy financial losses.

Till recently export of grapes from
India was mostly confined to neighbouring countries due to inadequate
pre-cooling facilities and consciousness about quality as well as residues of
pesticides by countries like U.K., USA, Germany, Canada & Switzerland.

We have now taken adequate measures
to ensure prescribed pesticide residual limits in the grapes produced in the
country.To boost exports regular
guidance is being given to the farmers and their co-operative societies on
different aspects e.g. pre-harvest, proper use of pesticides, post harvest, packaging,
pre-cooling, cold storage and transportation. There is a need to increase the
share of Indian grape in the imports of European countries like U.K., Germany,
France and Netherlands where higher prices can be fetched. There is also potential for increase in the
export of Indian grape to Asian countries like Japan, Singapore, Hong Kong and
China in which prices are very high.

5.PRODUCTION TECHNOLOGY

5.1Agro-climatic Requirements

Grape
is a versatile crop that can adjust to any type of climate. The ideal climate
is in the Mediterranean region. In Europe, America, Australia and Russia, it is
grown under temperate conditions, while in Afghanistan, Iraq, Iran, China,
Pakistan, Israel and North India it is grown under sub-tropical conditions. It
is also cultivated under the tropical climatic conditions of Chile, Argentina,
Venezuela, Kenya, South and West India.

Sandy
to clayey and loamy soil with good drainage and irrigation facilities is
suitable for the cultivation of Grapes. Soils having pH value from 6.5 to 7.5
are most suitable.

In
its natural habitat, the crop bears fruit during the hot and dry period and undergoes
dormancy during the period of severe cold. It tolerates frost during resting
stage but is very susceptible during growing period. Temperature ranging from
15-350 C is ideal for shoot growth and normal physiological
processes of the grapevine. Vines do not grow and fruit well when the
temperature falls below 100 C.

Locations
where the annual rainfall does not exceed 900 mm. are ideal for its
cultivation. More than the amount of
rainfall received during a year, the number of rainy days in a year and the
occurrence of rains in relation to the stage of growth of the vine is important.
Humidity associated with rains during
flowering and fruit ripening is not favourable and invites the attack of fungal
diseases.

5.2Growing and Potential Belts

Maharashtra (Nasik, Sangli,
Ahmednagar, Pune, Satara, Solapur and Osmanabad Districts) ranks first in the
production of grape followed by Karnataka (Bangalore, Kolar, Bijapur), Tamil
Nadu & Andhra Pradesh (Rangareddy, Medak, Ananthapur). In these States, grape
orchards bear two crops in a year resulting in exceptionally high yield.Fruit quality is however poor.

In north India, grape is cultivated
mainly in Punjab, Haryana, Himachal Pradesh, and Uttar Pradesh.Vegetative growth takes place only in the spring
season; consequently the fruiting is only once in a year during the summer
months.

Land is leveled by a tractor or bulldozer as per the requirement, soil type and gradient. In case of drip irrigation, leveling need not be perfect.

The size of the plot will vary with the type of training system used. In case of bower and telephone or “T” trellis the ideal size could be 60 X 80 m. and 90 X 120 m. respectively.

5.5Planting

Grape
is usually propagated by hard wood cuttings, though propagation by seed, soft
wood cuttings, layering, grafting and budding is also used in some cases.

The grapevines are usually planted in pits. The size of the pit depends upon the spacing of the vines and also on the specific requirements of the variety. The depth may vary from 60 to 90 cm. depending upon the soil type. Wider spacing (1.2 m. X 1.2 m.) is required in case of vigorous varieties like Anab-e-Shahi and Bangalore Blue. A little less than that (i.e. 90 X 90 cm.) is required in case of varieties viz. Thompson Seedless, Perlette and Beauty Seedless. In central Maharashtra and northern parts of Karnataka the spacing adopted for Thompson seedless and its mutants is 1.8m X 2.4 m. The pits need to be opened about a month before planting.

Planting is usually avoided during the rainy season. The best time for planting is February-March in North India, November-January in the peninsular India. In Karnataka and Tamil Nadu it is usually planted during December-January, due to the fact that rainy season lasts upto end of November.

Growth
of the plants starts 10-15 days after planting, depending upon the season of
planting. Growth occurs earlier in case of those planted during warm season as compared
to those planted in cold season.After
one month of planting, the young plants need staking and training.

5.6Training Systems

In India systems like bower, kniffin, telephone, head and slanting trellis have been tried in the past, but the bower & telephone system are being followed on a large scale. About 80% of the vineyard area in India is on bower system.

The training system and intensity of pruning recommended for different varieties is given below:

Varieties

Distance of planting

System of training

No. of canes to be left on each vine

No. of buds to be left per cane

Thompson Seedless

2 x 3

Kniffin

16-20

8-10

Beauty Seedless

2 x 2

Head

16-20

3-4

Anab-e- Shahi

3 x 6

Arbour

60-80

5-6

Perlettee

3 x 3

Head, Kniffin

30-40

3-4

5.6.1Bower

This system is most widely used in commercial cultivation of grapes and particularly for the vigorous varieties with high degree of apical dominance. As the shoots start growing from the newly –planted rooted cuttings in the main field, only the best shoot growing vertically is allowed to grow along the stake provided upto the bower height.

5.6.2Kniffin (also called Espalier System)

The system is less expensive than Bower, yet it is less commonly followed. It is suitable for training moderately vigorous varieties having less degree of apical dominance. Close planting of vines within a row at spacing of 1.80 to 2.40 m. depending upon the vigour of the plant is followed keeping the row to row distance at 3 meters. As in the case of Bower, the vigorous and vertically growing shoot is trained along the vertical support.

Advantages of Kniffin System over Bower System:

·Less expensive

·Disease incidence and spread is less.

·Easy to carry out spraying and other cultural operations.

The main drawback is that yield is about half of what is obtained on bower system. Though the vine canopy is exposed to light, the lower laterals are less productive due to shading by the foliage on the upper laterals. Damage to the branches is more due to sunburn and birds.

5.6.3Telephone System

T-trellis is used in this system of training. It is a mini discontinuous bower with shoots hanging downwards with three topped wires and T-shaped support, the trellis looks like a telephone pole and wires. It is as expensive as kniffin system and is suitable for moderately vigorous varieties with slightly more apical dominance.

Advantages of Telephone System over Bower System:

·Better ventilation and light interception

·More convenient to carry out cultural operations and spraying

·Less expensive

Disadvantages of Telephone System over Bower System :

·Less yield as there is no provision for developing as many number of canes per unit area as in Bower.

·During summer months, sunburn of berries is observed in very hot and dry places.

5.6.4Head System

This is the least expensive of all the training systems. It is suitable for less vigorous varieties with less degree of apical dominance and for those in which the basal buds in a cane are fruitful, such as Beauty Seedless, Delight and Perlette in North India and Gulabi in South India.Plants are spaced very closely to accommodate about 4000 – 4500 plants per ha. with a spacing of 1.80 m. and 1.20 m to 1.50 m between the rows and within a row respectively. The vines are supported to vertical stakes of eucalyptus or bamboo poles of 1.50 m. length. These supports are fixed very close to the vine 30 cm. deep in the soil leaving 1.20 m above the ground.

The return on investment made is less as compared to the Bower system. Size of the berries produced on this system is larger as compared to that of other systems. Incidence of diseases is much less on this system.

5.7Pruning

The prevailing pruning practices in India can be broadly grouped into the following categories:

(i)Single Pruning- Single cropping

This system is prevalent in North India. Since only one growing season is available, grapevines are pruned with the onset of spring or during late winter (mostly January-February). Floral differentiation on the current shoots and the fruit set take place simultaneously. If all the bearing shoots are retained on the vine and pruned in the next winter for fruiting, the fruiting wood multiplies faster and the vine canopy becomes denser year after year, leading to barrenness within just 3 to 4 years. In order to regulate vine canopy and extend its productive life span, half of the mature shoots are pruned for fruiting and the other half are pruned for renewing the spurs to give rise to shoots that develop into fruiting canes for the next year. Alternatively, the fruiting canes are pruned back to renewal spurs and the mature shoots developed from the previous spurs are pruned to fruiting canes year after year.

(ii)Double pruning – Single cropping

This system is predominantly followed in Maharashtra, north interior Karnataka in case of Thompson Seedless, and Andhra Pradesh on Thompson Seedless and Anab-e- Shahi grapes. After harvest in summer, the vines are forced to undergo rest for about a month, during which period water is withheld to help concentrate the reserves in the mature parts of the vine. All the fruiting canes are pruned back to spurs retaining only one basal node. This is called as “back pruning “or “foundation pruning” or “summer pruning “. Buds on the shoots growing from these spurs differentiate into floral primordial and the shoots mature in about five months. These mature shoots are pruned for fruiting before the onset of winter (September- October). This pruning is called “forward pruning” or “fruit pruning” or winter pruning”. All the mature shoots are subjected to fruit pruning. Thus, in this system of pruning, a cycle of two prunings resulting in one crop is practiced.

(iii)Double pruning – Double cropping

This system is in vogue in Anab-e-shahi and Bangalore Blue grapes in the south interior Karnataka and in Anab-e- Shahi, Bhokri and Gulabi in Tamil Nadu. Barring Bangalore Blue, the pruning practices in other varieties are common. Mature shoots are pruned to canes of 7-8 buds after harvesting the crop in summer. The mature shoots arising from these 3-4 buds along spurs are pruned for fruiting canes in the next winter. In the Madurai region and other parts of Tamil Nadu, pruning is done during November-December for summer crop harvested during March-April, and during May-June for the second crop harvested during August-September. In the south interior Karnataka, the forward pruning is done during October-November for summer crop harvested during February-March and during April-May for the second crop harvested during July-August. In Bangalore Blue, the recently mature shoots are pruned to 3-4 nodes at every pruning. There is no alternative system of backward and forward pruning in this variety.Only forward pruning is practised. Time of pruning could be any time of the year excepting December. In this variety, the crop is harvested about 5 months after pruning. As a result, three crops are harvested in two years, and the crop is harvested almost throughout the year.

5.8Shoot Pinching

Shoot pinching is mainly done to regulate the growth, and provide better ventilation and light interception into the vine canopy. Shoot pinching is done during the growth as well as fruiting seasons in peninsular India but only during the fruiting season in North India and other temperate regions as there is only one growing season in these regions.

5.9Irrigation

Irrigation
practices vary considerably in different regions of India depending upon the
rainfall pattern, time of pruning, different growth stages, water-holding
capacity of soil, variety grown, training system followed and spacing of vines.
Irrigation is provided once in every three days in newly planted vineyards by
allowing water into a small circular basin of 50 cm. radius. With the increase
in growth rate the size of the basin increases to a radius of 2m. In case of
drip irrigation, only one emitter is placed at the base of the vine. The number
of emitters gradually increases to two and then four which are shifted about 30
or 40cm. away from the stem depending upon the variety and spacing of the
vines. Heavy irrigation is provided soon after pruning in order to wet the
entire root zone thoroughly and induce active growth in the vine. Light
irrigation of 50-75mm. (5.0-7.5 L./ha.) is given is given at an interval of
10-12 days during winter and 5-7 days in summers. In the event of rainfall
during that interval, the next irrigation is either omitted or delayed.
Irrigation frequency is reduced during anthesis, fruiting stage and also after
berry softening to improve fruit quality.

5.10Nutrition

Recommended doses of nutrients for different varieties under different agro-climatic regions are given in table below:

Table-4: Recommended nutrient doses (kg./ha.) for different varieties of Grape

Pruning time, variations in climate during the growth period (temperature, humidity and frost), use of various chemicals to control diseases and pests are the main factors which determine the quality of the produce. Good variety bunches of Grapes for eating should be from medium to big sized, seedless grains. Varieties like Perlette tend to bear very compact bunches and require considerable thinning of berries for proper development of berry and bunch. Removal of distal end of the bunch helps in uniform ripening of berries.

Application of growth regulators also helps in improving the fruit quality. Application of 20 ppm. of Gibberellic acid (GA) (2g./100 l. water) at full bloom followed by dipping of bunches in 75 ppm. of GA solution at fruit set stage increases the bunch and berry size of seedless varieties. Similar kind of treatment given to seeded varieties does not give the same kind of result. Pre-bloom application of SADH (1500 ppm.) and CCC (1200 ppm.) increases fruit set and yields in Thompson Seedless and Anab-e-Shahi cultivars of grapes.

In North India, plants start
fruiting after two years of planting. Berries
start ripening from the end of May in early varieties. However, most of the
varieties are harvested after they have changed colour near the tip and have
become sweet. A day prior to picking, the broken, decayed, deformed,
under-sized berries are removed. The clusters are usually harvested during the
early hours of the day before the temperature rises above 200 C.

Yield varies according to variety
and climatic conditions etc.The
average yield of Anab-e-Shahi and Bangalore blue is 40-50 tonnes/ha while that
of seedless varieties is 20 tonnes/ha. Average yield of 20-25 tonnes/ha. is
considered good.

6.POST HARVEST
MANAGEMENT

6.1Grading

Grading is mainly done based on the
size and colour of the grapes to maintain uniformity of berries in a package. While
grading, size of the berry is the criterion but not the size or shape of the
bunch.

6.2Pre-Cooling

Pre-cooling is done to reduce the
field heat, moisture loss and subsequently increase the storability of grapes. Fruit needs to be pre-cooled to a temperature
below 4.40 C within six hours after harvesting in cold rooms, forced
air coolers, refrigerator cars and tunnels. Cooling of grapes is generally
carried out in special rooms attached to the cold storage units. Mobile pre-cooling units (refrigerator cars)
are also in operation to cool the grapes during their transport to the cold
storage units situated away from the production site.

6.3Storage

The shelf life of grapes is only one
week at room temperature. The storage life of grapes can be increased by
employing suitable means to reduce desiccation, decay due to growth of fungi
e.g. Botrytis, Cladosporium, Alternaria
etc. and bio-chemical deterioration. Harvesting the over-ripe grapes during hot
hours of the day, careless handling to cause bruises and injuries to the
berries at harvest and packing stage can reduce the storage life of grapes.
Under optimum conditions of storage, the maximum storage life of Anab-e-Shahi variety
is 40 days, Muscat 45 days, Thompson Seedless 30-60 days etc. Ideal conditions for storage are low
temperature (00 C) and high humidity (92-96%).

The following methods are
recommended for increasing the shelf life of grapes :

Table grapes meant for local market
are picked and packed directly in containers in the field. Table grapes meant
for long distance markets and those for overseas markets are packed differently
in the packing shed. Raisin, juice and wine grapes are subjected to suitable
treatments and processed.

Different types of containers are
used for packing grapes in India. Bucket shaped baskets (36cm. diameter at the
top, 20 cm. at base and 25cm. height, capacity -5kg.) made of thin bamboo
strips are commonly used in Hyderabad (Andhra Pradesh) and Bangalore
(Karnataka). Wooden boxes rectangular in shape and capacity to accommodate 5 to
8kg. of fruits are also used. The most commonly used containers are ventilated
card board boxes of corrugated fibre board (CFB) cartons which absorb moisture
released by the grapes and provide insulation against minor fluctuations in
temperature during cold storage. Size of the box varies to accommodate 2 to 4
kg. of fruit. The inner dimensions of the CFB carton accommodating 4 kg. grapes
are 37 cm. in length, 25.5 cm in width and 11.5 cm. in height, and those of the
carton accommodating 2kg. grapes are 25.5x18.5x11.5 cm. Irrespective of the
size of the carton, each one contains two holes of 2cm. diameter on either
side. Table grapes for overseas markets are packed in five-ply corrugated fibre
board boxes, printed and labeled attractively. The standard dimensions of the
carton are 50 cm. x 30 cm. x 12 cm. to accommodate 5 kg. grapes.

For the European market, bunches of
grapes of approx. 300 to 700 gms. are packed in food grade plastic pouches.
They are then wrapped in polythene sheet along with grape guard and tissue
paper. Grape guard is used as per international norms to prevent fungal and
bacterial infection to grapes due to moisture, if any.

6.5Transportation

Table grapes are mostly transported
through roadways for local, short distance or long distance markets. About 5 %
of the produce is transported by rail and the quality of produce transported
through air cargo is almost negligible. The cold chain for grapes is maintained
meticulously right from pre-cooling state to selling of the same. The produce
for international market is sent through refrigerated vans by road upto the sea
port and then again by sea in refrigerated containers in the ships to their
respective destination.

6.6Marketing

The producers sell the fruit either
to the pre-harvest contractor or to the wholesaler through an agent with these
middlemen sharing profit. The responsibility of harvesting, packing,
transportation and marketing vests with the contractor to whom the produce is
sold on the basis of price agreed for unit weight of the produce or without
weighing for a mutually agreed price.

Co-operative grape marketing
societies are in existence in many grape producing states of India. The
advantage of marketing by producers’ cooperative are:

·Reduction
in the price gap by avoiding the commission agent and wholesaler;

·Regulate
supplies to different markets; and

·Minimize
marketing problems arising out of unhealthy competition among producers.

Two channels of selling grapes exist
in the international markets viz., (i) through producer’s co-operatives who
collect, pack, cool, transport, market it abroad and share the profit with the
growers and (ii) through traders who purchase, pack, pre-cool, store and then
ship these in refrigerated containers to overseas markets.

7TECHNOLOGY SOURCES

The major sources for technology as well as quality planting material are:

8.2The
cost components of such a model along with the basis for costing are exhibited
in Annexure
I. A summary is given in the figure below.The project cost works out to Rs. 3.20 lakhs.

Figure-I : COST OF PROJECT

Project Cost:

(Amount in Rs.)

Sl. No.

Component

Proposed Expenditure

1.

Cultivation Expenses

(i)

Cost of planting material

10,000

(ii)

Manures & fertilizers

9,000

(iii)

Insecticides & pesticides

4,000

(iv)

Cost of Labour

8,800

(v)

Others, if any, (Power)

3600

35,400

2.

Irrigation

(i)

Tube-well/submersible pump

56,000

(ii)

Cost of Pipeline

-

(iii)

Others, if any, please specify

-

56,000

3.

Cost of
Drip/Sprinkler

35,000

4.

Infrastructure

(i)

Store & pump house

30,000

(ii)

Labour room

-

(iii)

Agriculture Equipments

10,000

(iv)

Others, if any. Please specify (Bower system)

1,20,000

1,60,000

5.

Land Development

(i)

Soil Leveling

4000

(ii)

Digging

-

(iii)

Fencing & gates

29600

(iv)

Others, if any, please specify

-

33,600

6.

Land, if newly
purchased (Please
indicate the year)

@

Grand Total

3,20,000

@Cost of newly purchased land will be
limited to 10% of the total project cost.

8.3The
major components of the model are:

·Land Development:(Rs.4.0 thousand):This is the labour cost of shaping and dressing the land site.

·Fencing (Rs.29.6 thousand): It is necessary to guard the orchard by barbed wire fencing to
safeguard the valuable produce from poaching.

·Irrigation Infra-structure (Rs.56.0
thousand):For effective working with drip irrigation
system, it is necessary to install a tube well with diesel/electric pumpset and
submersible motor.This is part cost of
tube-well.

·Drip Irrigation & Fertigation
System (Rs.35.0 thousand):This is average cost of one
acre drip system for the crop inclusive of the cost of fertigation
equipment.The actual cost will vary
depending on location, plant population and plot geometry.

8.4Labour
cost has been put at an average of Rs.70 per man-day.The actual cost will vary from location to location depending
upon minimum wage levels or prevailing wage levels for skilled and unskilled
labour.Cost on ‘training’ system can
vary widely depending on the type used.Bower type is the most popular.

8.7Besides,
provision is also included for harvesting and packing/transportation for the
produce to the nearest secondary market.

8.8Returns from the Project:The average annual yield from the plantation is estimated at 3 tonnes
per acre in year two and 10 tonnes per acre in year three (vide Annexure III).Valued at Rs.25000 per tonne the total
realization works out to Rs.3.25 lakhs per annum.

Project Financing:

8.9.Balance Sheet:The projected balance sheet of the model is given at Annexure
IV.There would be three
sources of financing the project as below:

SourceRs. thousands.

Farmer’s share
160

Capital
subsidy64

Term
loan96Total320

8.10Profit & Loss Account:The cash flow statement may be seen in Annexure V. Annexure VI projects the profit and
loss account of the model.The annual
gross profit works out to Rs.56.3 thousand in year two rising to Rs.202.3 thousand
in year three.

8.11Repayment of Term Loan:The term loan will be repaid in 11 equated 6 monthly installments with a
moratorium of 24 months.The rate of
interest would have to be negotiated with the financing bank.It has been put at 12% in the model (vide Annexures
VII & VII-A).

8.12Depreciation
calculations are given in Annexure VIII.

Project Viability:

8.13IRR/BCR:The viability of the project is assessed in Annexure IX over a period
of 5 years.The IRR works out to 26.16
and the BCR to 1.4.

8.14The
Debt Service coverage ratio calculations are presented in Annexure X.The average DSCR works out to 5.45.

8.15Payback Period:On the basis of costs and returns of the model, the pay back period is
estimated at 3.47 years (vide Annexure XI).

8.16Break-even Point:The break even point will be reached in the 3rd year.At this point fixed cost would work out to 30.0%
of gross sales - vide Annexure XII.